As the Greater Toronto Area is becoming more popular for homeowners and investors, available properties that may be good candidates for flipping are becoming scarce. That is good news for the informed investor because rookie investors or those without a skilled advisor are more likely to look elsewhere. Opportunities still exist in Toronto and the Greater Toronto Area (GTA) - it simply requires more due diligence for the investor. A Grange Real Estate agent with expertise in Toronto the GTA as well as investment properties, and renovations is an important partner to have when considering flipping properties for a profit.
What do successful flips have in common? Performing and adhering to extensive and accurate planning, researching, and budgeting. You don't have to love the property, just the profit. However, many believe after watching the flipping homes and renovation reality shows, that there is easy money to be made by flipping homes. After watching a few of these shows I am sure you will witness a handful of financial disasters. Ask a Grange Real Estate agent how to purchase properties sight unseen.
Flipping is an investment strategy that may provide quick and profitable returns. Like most, if not all investments there is significant research that should be exercised prior to commitment. There may be unforeseen circumstances out of your control that will drastically impact your profit (or loss) which is no different than investing in the stock market, bonds, or other investment vehicles.
Before viewing and researching properties you will need to establish a budget which includes specifically the cash you have available to purchase and renovate, and also the cash you require to carry the property until it is sold. The cost associated with early mortgage termination and discharge.
You will need to know the specifics of the property and the neighborhood. Let's say for example you found a property that appears to be priced well below other homes in the neighborhood. Below are a few questions you should ask.